Vladimir Tomko, Independent Expert

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March 21, 2018

Vladimir Tomko, Independent Expert

Current State of Cryptogame Market

(White Nights Conference Prague 2018)
The official conference website — http://wnconf.com

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wnconf

March 21, 2018
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Transcript

  1. 2.

    What are cryptogames? –Games that utilise blockchain? –Games that accept

    cryptocurrencies as Payment Methods? –Games that can technically be played in blockchain using smart contracts and without any UI? –Games that offer players ownership of their virtual assets and stores them in Blockchain?
  2. 5.

    How it all started? 2 Jun 2017 – CryptoPunks came

    out – Scratched the surface of today’s idea of cryptogames – Had positive ROI* – Was moderately popular among crypto enthusiasts 28 Nov 2017 – CryptoKitties came out – High quality product – Huge virality – Made Ethereum network lag – Became a grossing success story and established a new trend
  3. 6.

    Games 34+ playable games (some are still in alpha/beta) 29+

    games announced and in development ?unannounced, but in development Around 16 games make money Good 33% Mediocre 30% Poor 37% Quality:
  4. 7.

    Common features –Blockchain: majority utilise Ethereum blockchain and ERC-721 token

    standard –Genre: Collectable games – cats, dogs, pets, alpacas, celebrities, lands, planets, whatever you want. –Development: most copy-paste-and-edit CryptoKitties smart contracts –Time to market: very fast (1-2 months) –Quality: usually poor or mediocre
  5. 8.

    Common features • Payment methods: majority use Metamask (Ethereum wallet

    that comes as Chrome and Firefox extensions) • Refunds: no refunds • Socialisation: almost absent • Game mechanic variety: very poor • Retention: mostly profit-driven • Paying users: 100%
  6. 9.

    Common features Most of the games, are not games at

    all, but more of a painting auctions
  7. 10.

    Audience Gamers, women 35-45? Nope: –Desktop users –Cryptocurrency enthusiasts –ICO

    investors –Traders –Mostly males, 25+ –Distributed geo
  8. 13.

    Problems Only one proven model – CryptoKitties’ version of collectable

    game Most of the current games are not playable on mobile devices – Metamask works only on Desktop – It is generally a lot more confusing to transfer funds to cryptocurrency wallet on mobile than it is on desktop Metamask is available only on: – Google Chrome – Mozilla Firefox
  9. 14.

    Problems –App Store guidelines regarding payments prohibit using non-in- app

    payment methods as main solutions for unlocking content and buying in-game merchandise (paragraphs 3.1.1, 3.1.3, 3.1.4) –Cryptogames is not a regulated market yet, so it is prone to scams and Ponzi schemes –Ethereum Blockchain has it’s weak points. You can’t store everything there, it will get too big very fast. Writing to blockchain is not free.
  10. 15.

    Problems –Blockchain developers usually are very expensive –Cryptogames are targeting

    the same users as ICO projects (Initial Coin Offerings) do. Every service around ICO is overpriced at the moment. –Copyrights may and are getting violated.
  11. 16.

    Traffic There are currently no cryptogame platforms with traffic that

    could feature your product – there is no free traffic around
  12. 17.

    Traffic Who has the traffic: – Facebook and Instagram (temp.

    banned crypto-related ads) – Google AdWords – Twitter Ads – CPA networks, crypto-related (e.g. Advendor) – Crypto Ad-networks (e.g. Cointraffic) – ICO listings – Crypto related media (e.g. Cointelegraph) – Bitcointalk (ads and ANN posts) – Telegram (ads in groups/channels, invite-spam) – Reddit (native ads in crypto subreddits) – Twitter/YouTube influencers (especially YouTubers)
  13. 18.

    Traffic Cryptocurrency-themed quality traffic is very expensive: • USD 3-4

    CPC on Facebook is a common price • USD 7 000-10 000 for an article on popular crypto-related media • USD 20-30 CPM is normal price on popular media resources
  14. 19.

    Traffic – Virality Writing good articles on various free resources

    can bring your game some visibility. Medium – has a featured section for each category. Getting there can attract new users Steemit – has strong cryptocurrency community and engaged users Golos – same as Steemit but of a lesser scale and for Russian audience Bitcointalk – good bounty campaign with your game assets as bounties can do some serious work
  15. 20.

    Who has the edge? Which teams have advantage if to

    start developing a cryptogame right now? Teams that: –Have experience in creating web/social games –Can market their product fast –Have experience in blockchain development –Have access to crypto-related traffic
  16. 21.

    Opportunities The market is growing, so there are a lot

    of opportunities not only for game developers, but for infrastructure elements like: –“Pokedex’es” for popular cryptogames (e.g. CryptoKittydex) –Cryptogaming platforms (e.g. Xarcade) –Crypto-assets trading services (e.g. OpenSea)
  17. 22.

    Opportunities –Cryptogaming media (e.g. CryptoGamer); –Crypto “AppAnnies” (e.g. CryptoKitties Sales,

    Dapp Radar); –Cryptogaming listings/aggregators/rating services (e.g. Tokenized.Games)
  18. 24.

    PixelPunks Current lifetime: 8.5 months Total value of Punks Sold:

    610.4 ETH ($534 862) Their share: no commission
  19. 25.

    CryptoKitties Current lifetime: 2.5 months Total value of Kitties Sold:

    38 400.76 ETH ($ 20 001 657) Their share: Commissions: $750 062 Gen0 cats: $517 196 Total earned: $1 267 258
  20. 26.

    CryptoKitties 0 1000 2000 3000 4000 5000 6000 11.23.17 11.25.17

    11.27.17 11.29.17 12.1.17 12.3.17 12.5.17 12.7.17 12.9.17 12.11.17 12.13.17 12.15.17 12.17.17 12.19.17 12.21.17 12.23.17 12.25.17 12.27.17 12.29.17 12.31.17 1.2.18 1.4.18 1.6.18 1.8.18 1.10.18 1.12.18 1.14.18 1.16.18 1.18.18 1.20.18 1.22.18 1.24.18 1.26.18 1.28.18 1.30.18 2.1.18 2.3.18 Turnover, ETH (Sales Smart Contract) Turnover, ETH
  21. 28.
  22. 29.